Required information

Problem $18-37($LO $18-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Jayhawk Company reports current E&P of $$507,500$ and a deficit in accumulated E&P of $($ $$422,500).$Jayhawk distributed $$587,500$ to its sole shareholder, Rock, on the last day of the year. Rock's tax basis in the Jayhawk stock before the distribution is $$65,000.$

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

Problem $18-37$ Part a $($Algo$)$

a$.$ How much of the $$587,500$ distribution is treated as a dividend to Rock?

Dividend